Interest demand cannot sustain in absence of tax liability

Ozone Projects Private Limited Vs Commissioner of Service Tax (CESTAT Chennai) CESTAT Chennai held that as there is no tax liability on the advance amount received by the appellant, demand of interest thereon unsustainable. Facts- The appellant is registered with the Service Tax Commissionerate for various services including works contract service. During the course of audit of accounts, it was noticed that the appellant was engaged in providing construction services for a project viz. “Metro Zone” at Anna Nagar, Chennai. Later, the appellant did not provide the services and also had to re...